FCA clarifies expectations on bullying, harassment and violence to deepen trust in financial service

Serious bullying and harassment in financial firms qualify as misconduct, under rules confirmed by the FCA.

Previously, it was often unclear when such behaviour would constitute a breach of conduct rules by companies outside the banking sector.

On 1 September 2026, the same rules will be extended to approximately 37,000 other regulated companies, thereby enhancing consistency in financial services.

The FCA received widespread support for extending these rules in response to previous consultations.

Serious, proven cases of misconduct by individuals will also need to be shared through regulatory references, similar to current financial misconduct, making it harder for individuals to avoid consequences by moving from one company to another.

FCA Deputy Chief Executive Sarah Pritchard stated:

When we see market issues, there are often cultural deficiencies within companies. Behaviour such as bullying or harassment going unchallenged is one of the most dangerous signs—a culture where this occurs may raise questions about company decision-making and risk management. Our new rules will help drive consistency across the industry and support the vast majority of companies that want to do the right thing to deepen trust in financial services.

The FCA also asked whether further guidance would be helpful and proportionate for companies implementing rule changes. It has already incorporated feedback on its previous draft guidance.

The draft guidance covers non-financial misconduct that companies should consider when assessing whether an individual is suitable to work in the financial services sector. This includes how companies should consider social media use and the relevance of behaviour in private and personal life.

The FCA has decided not to proceed with guidance that is unnecessary to achieve its objectives.

It also does not seek to replicate existing legal obligations on companies under the Equality Act, nor the recent preventive obligations to protect workers from sexual harassment.

The guidance is open for consultation until 10 September 2025. The FCA will only proceed with the guidance if there is clear support for it.